. In case, the Finance Act has not been passed as on April 1 of the relevant AY, rates of income
tax in the provision of the ................ applies to ascertain tax on income.
(a) Finance Bill
(b) Previous Finance Act
(c) Finance Bill/Previous Finance Act, whichever are more beneficial to taxpayer
(d) Finance Bill/Previous Finance Act, whichever are more beneficial to tax office
Answers
Explanation:
Unless otherwise stated, all the amendments are to be effective from April 1, 2021 i.e. the assessment year 2021-22 relating to the income of the financial year 2020-21 starting from 1st April, 2020.
Amendments:
Nearly, 104 amendments are made either by amending/omitting existing sections or by insertion of new sections. In this article, the amendments, which are most relevant, are covered.
The exception provided in Explanation 1(b) to section 6(1), for Indian citizens and persons of India origin visiting India in that year has been decreased to 120 days, only in cases where the total income of such visiting individuals during the financial year from sources, other than foreign sources, exceeds INR 15 lakhs.
– The term ‘income from foreign sources’ has been defined to mean income which accrues or arises outside India (except income derived from a business controlled in or a profession set up in India)